chartists, page-12

It's hopeless to follow a penny stock and try to explain every little spike in volume and SP either up or down.

Penny stocks are completely driven by fundamentals and supply and demand. Which is why the 5 year weekly chart looks the way it does with a lot of very exaggerated spikes with a downward trend to under 2c level for some months.

Of course there is possibility that the SP and volume might rise before the next quarterly announcement, it also might dump afterwards as well like all the previous spikes in this chart.

Pattern won't change to a long term upward trend until the company starts reporting regular quarterly profits, increased sub numbers and increasing content over a longer period of time.

Then (if ever) once there are some real fundamentals related to profitable earnings SP might actually start to reflect supply and demand and price like larger stocks.

Until then the exaggerated spikes are likely to continue. Which might favour the short term swing traders, but hopeless for investors.

The above goes for just about every penny dreadful stock, not just QFX.

Kat.